ing investor day | keynote jan hommen | 19 september 2013

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www.ing-presentations.intranet

London – 19 September 2013

www.ing.com

Update on preparations for the IPO of ING Insurance

Jan Hommen

CEO

ING Insurance

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www.ing-presentations.intranet Key points

ING Insurance Update - 19 September 2013 2

• ING has entered the end phase of the EC restructuring and streamlined its portfolio

• Next payment to the Dutch state scheduled for November 2013, while maintaining strong capital ratios

• Double leverage of EUR 4.4 bln at 2Q13 is covered by current market value of stakes in ING U.S. and SulAmerica

• Divestments Insurance/IM Asia have so far generated proceeds of EUR 4.7 bln and a transaction gain of EUR 0.8 bln

• Base case of an IPO for Insurance Europe will mark final key step in the restructuring

• ING Insurance (ING V) will be the new IPO entity

• Financial leverage in ING Insurance has been significantly reduced

• Aim to be ready to go to the market in 2014

• ING Insurance has an experienced Executive Team

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www.ing-presentations.intranet ING has entered the end phase of the EC restructuring and has significantly streamlined its portfolio

3

* Excluding sale of part of SulAmerica announced but not yet completed, the remaining stake in SulAmerica is 21.5% ** Excluding the sales announced but not yet completed, the remaining parts in Asia include ING Life Japan and rest of IIM Asia *** Transactions announced but not yet completed include part of SulAmerica, Mexico mortgage business, CMF, ING-BoB Life, IIM Korea and ING Life Korea

Disposals completed and announced as part of the EC restructuring requirements

• Divest Insurance

• Latin America Life & Pensions

• Insurance ING U.S. IPO (29%)

• Part of SulAmerica*

• Largest part of Asia, including ING Life Korea**

• Sale ING Direct USA

• Relevant parts of WUB transferred to NN Bank

In addition, ING optimised its portfolio to bring more focus to the bank

• Additional divestments including:

• Private Banking Asia and Switzerland

• ING Real Estate Investment management

• ING Car Lease

• ING Direct Canada & UK

• Local custody services business in CEE

Total proceeds transactions completed was EUR 23 bln and total proceeds transactions announced, pending completion, is EUR 1.5 bln***

ING Insurance Update - 19 September 2013

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Leverage of the Bank*** is reduced

ING is more focused and more efficient


45

24

31 December 2008 30 June 2013

* 2008 figures are based on historical published figures ** Insurance assets rose slightly as decrease in assets due to divestments were offset by growth in the US, Netherlands and Korea/Japan due to FX impact and increase revaluation reserve *** Defined as: assets/shareholders’ equity. The CRD IV leverage ratio was 3.9% at 30 June 2013

ING Group has less assets (in EUR bln)*’** ING Group has less FTEs*

Cost/income ratio Bank*

1,035830

312322


Total AssetsInsurance

Total AssetsBank

-14.5%

85.3

54.7

FY 2008 1H13

75,109 64,298

49,551

18,345


FTEs Insurance

FTEs Bank

-33.7%

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www.ing-presentations.intranet ING’s equity and capital have strongly improved


ING Group Equity (in EUR bln)*

ING Group Debt/Equity ratio (%)*

ING Group Market Capitalisation (EUR bln)*

Core Tier 1 ratio (%)*

13.8

7.2


7.3

11.8


* 2008 figures are based on historical published figures

17.3

49.9


10.9

33.3

23 January 2009 13 September 2013

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-1.1%

11.8%

0.2%-0.7%

12.3%10.2%

1Q13 Dividend to

Group

Other 2Q13 Impact

CRD IV at

implementation

Pro-forma

CRD IV

Next payment Dutch state scheduled for November 2013, while maintaining strong capital ratios


• ING Bank's core Tier 1 ratio was 11.8% at 2Q13

• The pro-forma CRD IV core Tier 1 ratio on introduction at 1 January 2014 is 10.7% and on a fully loaded CRD IV basis 10.2%, exceeding ING's ambition 2015 target of at least 10%

Strong capital position despite dividend upstream to Group in 2Q13 More than EUR 10 bln paid to the Dutch State (in EUR mln)

10,000

7,750

10,000

750

750750

2,406

3,531375

375375

Oct.

2008

Paid to

date

Nov.

2013

March

2014

May

2015

Total

payments

Core Tier I securities Premium & Coupon payments

• Strong capital generation ING Bank allows for final payments to the Dutch State, while maintaining strong capital ratios

• Next tranche repayment of core Tier 1 securities to Dutch State is scheduled for November 2013

fully loaded

10.7%

10,156

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www.ing-presentations.intranet Group holding double leverage has been strongly reduced


7.1

0.1

-1.8

-0.8

-0.5

4.40.3 -4.2

1Q13 ING U.S.

IPO and

sale stake

SulAm

Up-stream

from Bank

2Q13 Payment

to NN

Bank

71%

MV US

Stake in

SulAm

Pro-forma

• Double leverage in the Group was EUR 4.4 bln at 2Q13. On 1 July, the Group provided EUR 300 mln capital to NN Bank and EUR 30 mln transition costs to set up NN Bank

• Current market value of remaining 71% stake in ING U.S., as well as the sale of an additional part of ING’s stake in SulAmerica and the market value of the remaining 21% stake would offset the remaining double leverage

• On 13 September, ING U.S. filed a registration with the SEC in connection with a possible sale of a second tranche of ING U.S.’s common stock by ING Group

19.5

30.1

IPO 2

May

13 Sep

Group core debt (double leverage) (EUR bln) Share price Voya since IPO (USD)

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www.ing-presentations.intranet Overview divestments Insurance/IM Asia

8

Multiple transactions announced (in EUR bln)

IFRS Book Value Cash consideration Transaction result (estimate)

Completed

HK/Thailand 0.95 1.64 0.95

Malaysia 0.62 1.34 0.75

ING Vysya Life and KB Life 0.21 0.19 -0.02

Announced

CMF, ING-BoB Life and IIM Korea 0.15 0.26 0.08

ING Life Korea 2.45 1.24 -0.95

Total 4.38 4.67 0.81

Still remaining

Japan 1.67

IIM Asia 0.12


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www.ing-presentations.intranet ING Insurance (ING V) will be the IPO entity


• ING U.S. will be transferred out of ING Insurance to the Group holding company, clearing the way to use ING Insurance (ING Verzekeringen) as the IPO entity for Insurance Europe

• The transfer of ING U.S. will be done as a dividend upstream to the Group before the end of 2013

• The transfer will not have an impact on ING Group’s capital ratios, and future proceeds from the sale of our remaining stakes in ING U.S. and SulAmerica will be used to redeem double leverage at ING Group

• The transfer will have no material impact on the leverage ratio for ING Insurance, as both the debt and equity of ING U.S. will be transferred to ING Group

ING Bank ING Insurance

(ING Verzekeringen)

ING Group

Insurance ING U.S.

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www.ing-presentations.intranet ING Insurance debt significantly reduced


• Removing the US from ING Insurance (ING Verzekeringen NV) clears the way to use ING Insurance as the IPO entity

• Excluding the US, ING Insurance had EUR 4.7 bln of net debt at 30 June 2013, and that will be reduced to EUR 3.1 bln using the proceeds from the announced sales Insurance/IM Asia and the full redemption of intercompany debt from ING U.S.

• As we move towards an IPO, the final capital target yet to be finalised under regulatory, rating and economic constraints

Pro-forma ING Insurance (ING V) excl. ING U.S.

30 June 2013 (in EUR bln)*

Europe 14.1 Equity 14.4

Asia 1.8 Net debt** 3.1

ING Re & Other 1.6

17.5 17.5

4.7

3.1

-1.1-0.3-0.1

2Q13 IC US Sales CMF,

ING-BoB Life,

IIM Korea

ING Life Korea Pro-forma

ING Insurance net debt (in EUR bln)

* Including capital injection NN Bank, announced sales Insurance/IM Asia and redemption intercompany debt from ING U.S.

** Hybrids and Financial Debt, net of cash

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www.ing-presentations.intranet IPO preparations on track to be ready to go to the market in 2014

11

2012 2013 2011

Legal structure aligned for

separation EurAsia and U.S.

Operational disentanglement of EurAsia and US Insurance/IM operations completed

Separate divestment of Asia announced

Stepping up efforts to prepare for base

case IPO

Transaction structure and exact timing still to be determined

• Transaction is planned in 2Q-4Q 2014, depending on market conditions

• Transaction structure is still to be determined. IPO is base case but final form of the transaction could include a (partial) spin-off

• All forms require substantially the same preparations and key criteria to assess transaction structure include

• Capital considerations for ING Group and ING Insurance (INGV)

• Effect on shareholder value, particularly in light of market conditions

• Complexity, risk and time frame of process


2014

Transfer ING U.S. to ING Group clearing the way to use INGV as the IPO entity

Planned IPO

Merger commercial operations

WUB/NN Bank

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Key Corporate Roles

Bruce

Hodges

Joined 2012

Chief

Technology

Officer

• Former CEO Life Malaysia • Extensive international experience in financial

services

Dailah Nihot

Joined 2000

Director

Corporate

Communications

& Affairs

• Head Corporate Sustainability ING Group • Extensive experience in corporate

communications, PR, media relations and CSR

Duncan

Russell

Joined 2012

Head of

Corporate

Finance*

• Managing Director Group Acquisitions & Divestments for ING

• Previously Head of European Insurance Research, Managing Director JP Morgan

Janet Stuijt

Joined 2008

General Counsel

& Head of Legal

and Compliance

• Member of the Global Legal Committee ABN AMRO & Regional Legal Counsel for ABN Amro Singapore

ING Insurance has a new and experienced Executive Team


Management Team

Lard Friese

Joined 2008

Chair • More than 22 years of experience in the financial services industry, most recently with NN, ING Insurance EurAsia

• Leadership positions at AEGON, VNU/ACNielsen, Ceska Pojistovna and Generali-PPF Holding

Delfin Rueda

Joined 2012

Chief

Financial

Officer

• More than 20 years of experience in the financial services industry, most recently with Atradius

• Previously held leadership positions at UBS and J.P. Morgan

Doug

Caldwell

Joined 1999

Chief Risk

Officer

• More than 22 years of experience in the financial services industry, most recently with ING Insurance Asia Pacific

• Leadership posititions at ING Re, ING Group and ING Insurance US

Dorothee van

Vredenburch

Joined 2009

Chief

Change &

Organisation

• More than 25 years of experience in the financial services industry, most recently with ING Group

• Previously held leadership positions at Citigate Europe and RedZebra Group

David Knibbe

Joined 1997

CEO ING

Insurance

International

• More than 15 years of experience in the financial services industry, most recently with NN

• Leadership positions at ING’s life insurance JV with Piraeus Bank in Greece, ING Bank and ING Investment Management

Stan Beckers

Joined 2013

CEO of ING

Investment

International

• More than 30 years of experience in the financial services industry, most recently with BlackRock

• Leadership positions at Barra, Kedge Capital, Alpha Management Group, Barclays Global Investors, several pension funds, and KAS Bank

* Includes Capital Management

12

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www.ing-presentations.intranet Disclaimer


ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’).

In preparing the financial information in this document, the same accounting principles are applied as in the 2Q2013 ING Group Interim Accounts.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING’s core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING’s restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit-ratings, (18) ING’s ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in the most recent annual report of ING Groep N.V. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and, ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.

www.ing.com

ing investor day | keynote jan hommen | 19 september 2013

Economy & Finance